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By Vijay Kumar

Central Excise

Excess interest paid by assessee - refundable; Revenue to pay Rs 10,000 for frivolous appeal : P&H High Court

AN assessee paid interest on delayed payment of duty, @24% instead of 15%. When the mistake was realised, it claimed for a refund of the excess amount. Do you need a High Court to tell you that this amount should have been honourably refunded?

The very learned Assistant Commissioner rejected the claim in the ground that Section 11B pertains to refund of duty and not refund of interest. Suppose it is proved later that the goods were not excisable and the duty paid had to be refunded, will the Assistant Commissioner refund only the duty and not the interest?

The more learned Commissioner (Appeals) concurred with the views of the learned adjudication authority.

Duty paid before Show Cause Notice - penalty and interest liable : CESTAT

THE speed is catching up. The Tribunal has relied upon a decision of the High Court rendered on 25^th July, in an order made on 2^nd of August -because TIOL had reported the High Court order.

The Revenue is in appeal against the order made by the Commissioner (Appeals) setting-aside the penalty imposed on the appellant under the order-in-original and holding that no interest was chargeable as was held by the adjudicating authority.

Service Tax

Collection of blood samples on behalf of principal lab is not Business Auxiliary Service : High Court

THIS appeal filed by the revenue challenges order dated 30.08.2006, passed by the Customs, Excise and Service Tax Appellate Tribunal, holding that the services rendered by the assessee respondent do not fall in any of the category specified in the definition of 'Business Auxiliary Service' as per Sub-section 19 of Section 65 of the Finance Act, 1994.

The argument raised by the revenue is that the activity carried out by the assessee-respondent amounted to promotion or marketing of service provided by its principal M/s Speciality Ranbaxy Ltd. has been rejected by the Tribunal.

Income Tax

Non-competing fee received in sale considerations is revenue receipt - If there is a doubt, Revenue has power to find out real intention of parties ignoring the apparent : ITAT

Whether the non competing fee received in a sale consideration for transfer of ownership of assets is "capital receipt or revenue receipt in nature "for assessment of tax

See our columns tomorrow for the judgements